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Economies of scale and scope in Taiwan's CPA service industry

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  • Ting-Wong Cheng
  • Kuo-Liang Wang
  • Chih-Chiang Weng

Abstract

Based on the 1994 survey data of certified public accountant (CPA) firms in Taiwan, and by applying the iterative seemingly unrelated regression (SUR) technique to a simultaneous system of a translog multi-product cost function and its corresponding factor share equations, an attempt is made to investigate the extents of economies of scale and scope in Taiwan's CPA service industry. The empirical results show that product-specific scale economies exist for auditing, tax and management advisory services. Ray scale economies are significantly present. Significant economies of scope exist in providing tax and management advisory services.

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  • Ting-Wong Cheng & Kuo-Liang Wang & Chih-Chiang Weng, 2000. "Economies of scale and scope in Taiwan's CPA service industry," Applied Economics Letters, Taylor & Francis Journals, vol. 7(6), pages 409-414.
    • Handle: RePEc:taf:apeclt:v:7:y:2000:i:6:p:409-414
    DOI: 10.1080/135048500351375
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    References listed on IDEAS

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    Cited by:

    1. Ryu, Sang-Lyul & Won, Jayoun, 2022. "Scale and scope economies in Korean accounting firms around Sarbanes-Oxley regulations," Journal of Asian Economics, Elsevier, vol. 78(C).
    2. Géraldine Broye & Laurent Weill, 2008. "The Effects of Concentration on Competition and Efficiency : Some Evidence from the French Audit Market," Working Papers of LaRGE Research Center 2008-04, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    3. Abdullahi Abdulkadri & Michael Langemeier & Allen Featherstone, 2006. "Estimating economies of scope and scale under price risk and risk aversion," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 191-201.

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